SpaceX surges 40% on debut, semiconductors roar back | Market Movements
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Hi there, Asher here, one of the producers of Shared Lunch here at Sharesies. We're trying something a little bit new. We've got a Market Movements weekly feature, which you may have seen on YouTube and also on our social channels. And we're bringing it here to you every week now on Shared Lunch. This is hosted by Jackie Newman out of our Sydney office and explores the latest in market movements in the global, US, Australian and New Zealand markets. Enjoy.
Markets bounced back, diplomacy shifted the outlook on oil, and the world's biggest IPO landed. Here's what you need to know. I'm Jacqui Newman, Head of Capital Markets at Sharesies. Let's get into it. Markets found their footing last week. The S&P 500 finished up 0.65% and the NASDAQ gained 0.7%. Closer to home, the ASX 200 added 2.1% and the NZX 50 gained 1.8%. A solid recovery across the board. In terms of US sector performance, the picture was notably dispersed. Software underperformed, falling over 5%. Big tech was also mostly lower, with Microsoft and Apple among the weaker performers. Some midweek selling was attributed to capital rotating toward the SpaceX IPO. On the other side, semiconductors rebounded strongly, up over 9% for the week.
The Iran situation evolved quickly over the weekend and early this week. Reports emerged that a memorandum of understanding was taking shape between the US and Iran. It is expected to cover the reopening of the Strait of Hormuz, the lifting of sanctions and a framework for nuclear negotiations. A formal signing is reportedly being targeted for later this week. This will be one to watch closely as the details may be formalised in the coming days. The other big story was SpaceX listing on Friday in a landmark deal. The company raised $75 billion at $135 a share, valuing it at roughly $1.77 trillion. It was reported that demand for the IPO exceeded $350 billion, implying the book was roughly four times oversubscribed.
Shares began trading on the Nasdaq on Friday. As of Tuesday morning, Aussie time, the stock had traded up 40% versus the IPO price, with over 500 million shares changing hands on the first day of trading. It is the largest IPO in history. The IPO pipeline will be one to watch, with OpenAI and Anthropic both speculated to be planning to list later this year. In related news, New Zealand-founded Rocket Lab will join the Nasdaq 100 from 22 June, a significant milestone for the space company. In terms of key economic prints, US CPI for May came in at 4.2% year-on-year. It was the highest reading since 2023, albeit in line with expectations. The spike was almost entirely energy driven, and core inflation actually came in slightly below consensus estimates.
In Australia, the data was a mixed bag. Business conditions stabilised in May. However, consumer sentiment softened again in June, weighed down by energy costs, RBA rate hikes and budget-related housing tax changes. Looking ahead, it's a big week for central bank decisions. The RBA and Bank of Japan both handed down decisions on Tuesday. All eyes are now on Wednesday's Fed decision, Kevin Walsh's first as chair. No hike is expected, but the updated projections and press conference will be closely watched for tone. The Bank of England and Swiss National Bank will also hand down rate decisions on Thursday. US retail sales also land this week, giving a read on how the American consumer is holding up.
Finally, it's worth noting that US markets will be closed on Friday for the June 10th National Independence Day. Plenty to keep an eye on. Stay across it and happy investing.
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